6 things about South Africa's business 'iron lady', Busisiwe Mavuso

Busisiwe 'Busi' Mavuso is known as the Iron Lady of South African business for her willingness to criticize what she perceives to be the views of President Cyril Ramaphosa. Mismanagement of public assets. It's not a nickname her CEO of Business Leadership South Africa would choose for herself, but she's not shy about her reputation.

“That’s definitely your classification,” laughs Mavuso. africa report She was called in for a midday interview in the week that state-run electricity company Eskom plunged the country into yet another devastating Stage 6 power outage.

“Yes, I speak truth to power, but I think it also depends on where we are as a country at this moment,” she began. “The center cannot be maintained. FDI will not come into a country where there is power outage for 10 hours a day. That is a recipe for disaster. We are asking for trouble.”

1. Soweto start

Born in 1977, Mavuso epitomizes the entrepreneurial success of black women in post-apartheid South Africa. Born in the Soweto suburb of Johannesburg, she faced the same odds from the start as millions of black women who still represent the poorest segment of South Africa's population.

The democracy we achieved was a political system

Mavuso was raised by his mother and began working after high school to support his family. She continued her studies part-time at the University of South Africa (UNISA) where she qualified as a Chartered Accountant.

Mavuso's journey began in 1995, at the dawn of democracy, and he gained experience in a variety of sectors, from banking to telecommunications to healthcare.

She was appointed CFO of the Black Business Forum (BMF) in 2009, a position she held until 2016 when she became managing director of the country's vocal business lobby group advocating for corporate equity in a racialized economy. I did.

She says that despite more than 300 years of racial inequality, many in the country are still not reaping the benefits of the end of apartheid. “The democracy we achieved was a political system,” Mavuso says frankly.

2. Flame of Leadership

After 10 years at BMF, Mavuso moved to become COO of Business Leadership SA, an industry association representing the country's largest companies. She was appointed CEO in 2019, at the end of Jacob Zuma's presidency and South Africa's “lost decade.”

Like many prominent business leaders, she was initially hopeful when Ramaphosa took power, only to quickly become disillusioned.

“[I am] We will strive to make the government aware of the following: Why South Africa is once again a failed African nation''Mavuso says of the escalating criticism of the ruling African National Congress (ANC).

Mr Mavuso, who was deemed “untouchable” by the ANC, was appointed in April 2022 as a board member of Eskom alongside former CEO Andre de Ruyter, leading to a “disruption” in South Africa's energy sector. He testified that the cause of this was the ANC, and was in fierce conflict with the party. At the feet of the ANC government. Parliament expelled her from the proceedings after she refused to apologize for her “unusual” actions. Mr Mavuso resigned from Eskom's board soon after.

As a business leader, she says she has the dubious privilege of being a sought-after voice by foreign diplomats and investors.

“We are sometimes asked very difficult questions about where South Africa is now,” she says.

3. Truth Teller

Next, local business leaders need to make the government understand why South Africa is the way it is. Struggling to attract foreign direct investment.

“We have a duty to the government to understand why there is a shift from South Africa to East Africa,” she says.

She says the international community has a bleak view of South Africa, which is “a real tragedy and it would be wrong for businesses not to get that message across”.

Mavuso shares some of the The horrors behind the scenes of South Africa's business sector: “Difficult” local trading environment. The power outage will undermine “productivity, competitiveness and long-term decisions regarding business expansion in South Africa”.

There is also a “dysfunctional” logistics industry that allows a 26km line of loaded trucks to sit idle outside the Indian Ocean port of Richards Bay. “Transnet is a monopoly in transport and logistics in this country,” she said, alluding to her dissatisfaction with the rail freight agency.

“Keep in mind that some of these items will be on the shelf,” Mavuso says. “Don't think this is just a problem in terms of getting goods to market. We have similar problems with goods coming into South Africa. 71,000 containers stranded at South African ports”

She says the Ramaphosa government is lucky that foreign businessmen and political leaders dare not ignore decorum and speak out. But the whispers are getting louder.

“As a French businessman, it's impossible for me to say to the president of South Africa, 'This is why I won't invest in your country,'” she says.

4. Black empowerment

As state failure grips the country, many critics are decrying Black Economic Empowerment (BEE). Through this process, the ANC has since 1994 placed often less qualified party loyalists in prestigious provincial executive positions.

But Mavuso offers a more nuanced view.

“When the World Bank speaks of South Africa's transition as an incomplete transition, [it means] There are still many people not enjoying the benefits of democracy,” she says. BEE needed to be promoted because “we needed to make sure the economy didn't continue to benefit the 10%.”

“There are many South Africans whose future is determined by which side of the fence they were born on,” she says. “You just have to be born white in the suburbs.” [or] You are a black person from Soweto like me, [and] Your future is already decided to some extent. ”

There is a great deal of distrust [a black woman’s] leadership ability

But she stresses that it is not an advocate of promoting people just because they are black.

“Talent is distributed equally in this country, but opportunity is still not,” she says. “And that's a big problem.”

Delving into her own experience, Mavuso says BEE has made the career ladder a little easier for black men, but not for black women. Because the archetype of leadership in South Africa is white and male.

“As an African black woman, you are not like that,” she says. “You're doing business in South Africa, which is still very Eurocentric and patriarchal, and you're doing the opposite. There's a lot of distrust in your leadership abilities.”

5. Privatization of government

Despite his feisty reputation, Mr Mavuso recently sent an olive branch to the ANC government, allowing the corporate sector to use its expertise, skills and experience to support Mr Ramaphosa's rescue of state-owned enterprises. I asked. primary target These include energy (Eskom), transport and logistics (Transnet), and crime and corruption (National Prosecuting Authority).

“We want to end load shedding by supporting efforts to close the current 6GW energy capacity gap in the short to medium term,” she says. “And we would like to argue that: The primacy of the rule of law”

Critics such as Pandey Pillay, who chaired the Finance and Fiscal Commission under former President Nelson Mandela, worry that state failure will lead to privatization by stealth.

“It is also important to bear in mind that South African capital is not above reproach when it comes to corruption, as the Zondo report on state capture shows,” Pillay said. africa report.

But Mavuso denies this. She says business needs a functioning state to thrive, not take over the government's jobs.

“Think about it,” she says.South Africa has no domestic savings.”

“We are sitting in a demographic recession” with economic growth expected to be only 1% next year, while the population is expected to grow by 1.6%. [for] At least for the past 10 years. ”

It's dangerous to turn down offers of private sector help, she warns. “So many people are saying this that South Africa is teetering on the edge of our version of the Arab Spring. [enough is] sufficient. “

She says the private sector is not going to join forces because “companies are investing a lot in this country.”

6. Culture of corruption

Mavuso warns that South Africa has deep-seated “cultural issues” around grafting that are hindering much-needed governance improvements.

Mavuso predicts that over the next 10 years, despite Zondo's damning reports on state capture, no bigwigs or influential figures will be jailed for corruption. She laments that corrupt officials in the upper echelons of Ramaphosa's government have been named but not prosecuted.

“They are walking around with impunity and that is a serious problem,” Mavuso said. “Crime and corruption in South Africa is a cultural issue; There's no shame in being accused of a crime”